A disadvantage of electronic funds transfer (EFT) is that the process cannot be reversed if a sender should enter an incorrect account number. The APSense website states that other disadvantages associated with EFT include the potential for hacking of personal banking details and periodic technical difficulties.
According to the Bank of Guyana, the EFT system is being used more frequently for paying bills online due to the ease and convenience of the transactions. The process may save money on the costs of checks, envelopes, paper billing and stamps. Therefore, the administrative costs are reduced and banking is facilitated with a greater amount of security and efficiency. The Bank of Guyana states that EFT transfers often are used for credit transfers, like payroll processing, or for paying mortgages.
The APSesnse website adds that EFT simplifies bookkeeping as the transfer is often instant or completed within one day. EFT offers the advantage of direct deposit as well.
The FDIC terms EFTs as being transactions that include ATM withdrawals, point-of-sale transfers, direct deposits or any other transfers that are initiated over the telephone. EFTs, according to the FDIC, also are defined as balance inquiries, regardless of whether the activity results in a transaction.